CASH FY25 Results: Revenue Falls 13.15%, Loss Narrows to HK$52.76 Million as Retail Headwinds Persist

Bulletin Express
Mar 27

Celestial Asia Securities Holdings Limited (CASH) released its audited results for the year ended 31 December 2025.

Financial Highlights • Revenue declined 13.15% year-on-year to HK$767.44 million, driven mainly by softer sales in the retailing segment. • Loss attributable to owners narrowed 9.43% to HK$52.76 million, translating into a basic and diluted loss per share of HK$0.6537. • No final dividend was declared, unchanged from the prior year.

Segment Performance • Retailing (Pricerite): Revenue dropped 15.90% to HK$698.80 million; segment loss stood at HK$10.22 million amid weak furniture demand and store optimisation. • Investment Management (CAFG): Revenue surged 192.75% to HK$20.19 million; segment profit was HK$3.37 million, buoyed by higher assets under management and performance fees. • Other Financial Services (CFSG excluding investment management): Revenue edged up 5.91% to HK$48.46 million; segment loss remained heavy at HK$37.16 million despite improved broking and wealth-management income.

Cost Structure and Expenses • Cost of inventories fell 12.22% to HK$410.83 million, partly offsetting the revenue contraction. • Total salaries and related benefits decreased 14.03% to HK$154.09 million. • Other operating, administrative and selling expenses were cut 6.46% to HK$194.45 million. • Finance costs dropped 18.01% to HK$17.42 million after repayment of certain borrowings.

Balance Sheet and Liquidity • Total assets inched up 0.98% to HK$1.04 billion, while total equity fell 48.87% to HK$49.16 million due to accumulated losses. • Borrowings increased 3.90% to HK$269.30 million, including HK$30.31 million in newly issued convertible bonds. • Cash and bank balances (general accounts and pledged deposits) rose 12.52% to HK$190.55 million. • Net current assets improved to HK$20.71 million (FY24: HK$13.75 million); current ratio stayed at 1.0×. • Management reported a gearing ratio of 547.8%, versus 269.7% a year earlier.

Capital Actions • CASH issued HK$40.00 million of convertible bonds in June and August 2025 to bolster working capital for the retailing business; proceeds were fully utilised by year-end. • The group redeemed its stake in CASH Prime Value Equity OFC for approximately HK$16 million, reclassifying the vehicle as a financial asset at fair value through profit or loss. • During the year, 22,000 shares were repurchased on-market for a total consideration below HK$20,000.

Operational Metrics • Retail revenue per square foot slipped 7.04% to HK$3,578, while same-store sales contracted 10.80%. • Inventory turnover improved to 19.24 days (FY24: 20.60 days). • Average broking fee income per active client increased 50.00% to HK$1,800.

Management Commentary CASH cited fragile consumer sentiment, higher interest rates and a soft property market as key drags on furniture demand in the first half, followed by a mild rebound in the second half alongside recovering inbound tourism and stock-market strength. Cost control, store rationalisation and expansion of tailor-made furniture and renovation services were highlighted as counter-measures.

In financial services, strong market turnover and IPO activity supported broking and wealth-management growth, while investment management benefited from market volatility and expanded mandates.

Outlook statements focused on enhancing operational efficiency, leveraging AI tools, and expanding family-office and virtual-asset offerings; no quantitative guidance was provided.

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